Perth's rental market post-COVID eviction ban

Without more investment, it would take 1300 years to house every person on WA’s social housing waitlist

By Marta Pascual Juanola

March 16, 2021

It would take the West Australian government more than 1300 years to house every person on the state’s social housing waitlist at its current rate – without accounting for a ‘tsunami’ of pandemic-related homelessness predicted when an eviction moratorium ends this month.

Meanwhile, in the private sector, people are spending more on rent and being forced into bidding wars, sparking fears among service providers they may flock to social housing if unable to secure accommodation.

Thousands of West Australians are facing eviction into homelessness due to the state’s shortage of affordable housing.

Advocacy groups warn the system is in crisis and are calling on the government to spot-buy properties, transfer public homes to community housing providers and unlock public land to build new units.

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Great news. My tenants have accepted my $60 pw rental increase on my gosnells 3 x 2 villa. It will go up to $350 pw!

I was originally getting $390pw back in 2014 when I bought it new. It went down as low as $250 pw at one stage. So I’m happy for it to have nearly recovered.

I’m not sure if I would’ve got more than $350 pw anyhow if I had listed it. This way I won’t have to fork out on the costs of a new listing. I’m thinking the tenants must have realised they wouldn’t have been able to find cheaper had they left.

New lease starts in May. The PM wanted 12 months but I said no give them a six month lease.

Pretty happy

 

We have a 4x 2 house coming up for lease renewal in May 2021 currently tenants are paying around $350 per week REA suggests a $30-$40 increase

51 Rental Properties in Ellenbrook, WA, 6069 | Domain

Looking at the area we're thinking $50

thoughts?

 

I think you can do a lot better!!

If they went somewhere else it’s going to cost them a lot in moving fees and they’ll have to pay the increase elsewhere too.

Request $60 and just see what the tenants say. Imagine getting the result your after. Don’t think of other scenarios.


Edited to say ask for $80 pw more. Have you seen the other listings!! They are asking heaps more. You’d easily be able to get $430!

 

You make a good point about rents coming down previously. Everyone likes to whinge when they go up but there is never sympathy for landlords when they down. It works both ways.

 

Yeah it was a very difficult 2-3 years for me. Goes in cycles. Now it’s the tenants turn.

I’m so grateful I had a six month cba deferral of my loan due to covid. It helped big time to get me through as I had to switch to p and I when previously was only paying IO. Phew. Now good times ahead.

 

This time last year. If asked I would have answered. I would be happy with a tenant paying rent on time at the moment.

Many people are desperate to find a place to rent in Perth at the moment. Many sad stories.

I have decided to increase by 10% but reviewed in 6 months for another 10% or possibly ask tenant what they would be happy with. After searching they may offer more than 10%

 

That's because landlords already have somewhere to live.

 

For sure. That's just my brief take on why broader community sympathy for landlords is limited.

 

Wat. I rentvested for 16 years.

 

It's 8 days away now, so they are going to have to motor if they want anything done

 

My tenants have more or less paid the same rent for almost 6 years. I negotiated a $20 a month increase in August last year which was knocked on the head by the govt until the end of March. The REA agent has advised the tenants that come August there will be a minimum 10% increase.

 

I know, looks a bit bleak.

 

You forget some are nurses who take double shifts to improve life , some are coppers, some are miners working weeks away from their families so they can have a better life.
I worked 80 hours per week got no assistance from the government and don’t expect sympathy.

although when I buy and an investment for future spare me the sob story.

Australia is a lucky country.

mid you can’t make it here god help you in most parts of the world.

 

End of rental moratorium a necessary step for WA rental market
NEW
22 March 2021

End Of Rental Moratorium A Necessary Step For WA Rental Market | REIWA

REIWA welcomes the emergency period for the Residential Tenancies (COVID-19 Response) Act 2020 ending on Sunday 28 March as promised and believes it is a necessary step to help fix Western Australia’s rental shortage.

REIWA President Damian Collins said the decision by the WA Government to extend the moratorium on evictions and rent price increases in September 2020 had had a debilitating effect on the state’s rental market.​

 

Most will jack up the rent to the max. Landlords do so at their peril though; do you want your tenant to hate you?

Government is right to stay out of it at this point.

 

6 months ago a landlord may have happily locked in a $15pw rent increase but were banned from doing so. Now the market has changed landlords can triple it so there is no easing into these hikes for the tenants. Unfortunately with such a massive downturn over the past 5 years Investors want to claw back the loses they have endured...its going to be brutal for some tenants. Swings and roundabouts they say... but go to be reasonable too.

 

The other problem is the longer you leave it, the bigger the shock.

When this ends rents might go up 15% (example). If you lock it for another 12 months, what if there's another 15% growth during that period? Tenants will be met with a 30% bump. That's a hell of a shock to the system and may be more destabilising than just letting them go up 15% now.